From cec7b58c60809bee2ca6b49dd7bf65d47336b081 Mon Sep 17 00:00:00 2001 From: Bodi Yang Date: Wed, 1 Nov 2023 15:16:03 -0400 Subject: [PATCH] add odc refundable parameter --- docs/guide/policy_params.md | 15 +++++++++++++ taxcalc/calcfunctions.py | 14 ++++++------ taxcalc/policy_current_law.json | 34 +++++++++++++++++++++++++++++ taxcalc/reforms/ARPA.json | 2 ++ taxcalc/tests/cpscsv_agg_expect.csv | 8 +++---- taxcalc/tests/pufcsv_agg_expect.csv | 8 +++---- 6 files changed, 66 insertions(+), 15 deletions(-) diff --git a/docs/guide/policy_params.md b/docs/guide/policy_params.md index 9bb20f218..923c1b18e 100644 --- a/docs/guide/policy_params.md +++ b/docs/guide/policy_params.md @@ -1310,6 +1310,21 @@ _Known Values:_ _Valid Range:_ min = 0 and max = 9e+99 _Out-of-Range Action:_ error +#### `ODC_refundable` +_Description:_ If true, the other dependent tax credit is made fully refundable. +_Has An Effect When Using:_ _PUF data:_ True _CPS data:_ True +_Can Be Inflation Indexed:_ False _Is Inflation Indexed:_ False +_Value Type:_ bool +_Known Values:_ +2013: False +2014: False +2015: False +2016: False +2017: False +2018: False +2019: False +_Valid Range:_ min = False and max = True +_Out-of-Range Action:_ error ## Itemized Deductions diff --git a/taxcalc/calcfunctions.py b/taxcalc/calcfunctions.py index 57bb98560..3fe290632 100644 --- a/taxcalc/calcfunctions.py +++ b/taxcalc/calcfunctions.py @@ -3108,7 +3108,7 @@ def AdditionalCTC(codtc_limited, ACTC_c, n24, earned, ACTC_Income_thd, def C1040(c05800, c07180, c07200, c07220, c07230, c07240, c07260, c07300, c07400, c07600, c08000, e09700, e09800, e09900, niit, othertaxes, c07100, c09200, odc, charity_credit, - personal_nonrefundable_credit, CTC_refundable): + personal_nonrefundable_credit, CTC_refundable, ODC_refundable): """ Computes total used nonrefundable credits, c07100, othertaxes, and income tax before refundable credits, c09200. @@ -3170,7 +3170,7 @@ def C1040(c05800, c07180, c07200, c07220, c07230, c07240, c07260, c07300, # total used nonrefundable credits (as computed in NonrefundableCredits) c07100 = (c07180 + c07200 + c07600 + c07300 + c07400 + c07220 * (1. - CTC_refundable) + c08000 + - c07230 + c07240 + c07260 + odc * (1. - CTC_refundable) + charity_credit + + c07230 + c07240 + c07260 + odc * (1. - ODC_refundable) + charity_credit + personal_nonrefundable_credit) # tax after credits (2016 Form 1040, line 56) tax_net_nonrefundable_credits = max(0., c05800 - c07100) @@ -3265,7 +3265,7 @@ def CTC_new(CTC_new_c, CTC_new_rt, CTC_new_c_under6_bonus, @iterate_jit(nopython=True) def IITAX(c59660, c11070, c10960, personal_refundable_credit, ctc_new, rptc, c09200, payrolltax, CDCC_refund, recovery_rebate_credit, - eitc, c07220, odc, CTC_refundable, refund, iitax, combined): + eitc, c07220, odc, CTC_refundable, ODC_refundable, refund, iitax, combined): """ Computes final taxes. @@ -3309,12 +3309,12 @@ def IITAX(c59660, c11070, c10960, personal_refundable_credit, ctc_new, rptc, Sum of iitax and payrolltax and lumpsum_tax """ eitc = c59660 - if CTC_refundable: - ctc_refund = c07220 + odc + if CTC_refundable and ODC_refundable: + ctc_odc_refund = c07220 + odc else: - ctc_refund = 0. + ctc_odc_refund = 0. refund = (eitc + c11070 + c10960 + CDCC_refund + recovery_rebate_credit + - personal_refundable_credit + ctc_new + rptc + ctc_refund) + personal_refundable_credit + ctc_new + rptc + ctc_odc_refund) iitax = c09200 - refund combined = iitax + payrolltax return (eitc, refund, iitax, combined) diff --git a/taxcalc/policy_current_law.json b/taxcalc/policy_current_law.json index 421003ebf..a1f607b7d 100644 --- a/taxcalc/policy_current_law.json +++ b/taxcalc/policy_current_law.json @@ -16556,6 +16556,40 @@ "cps": true } }, + "ODC_refundable": { + "title": "Whether the other dependents tax credit is fully refundable", + "description": "If true, the other dependents tax credit is made fully refundable.", + "notes": "", + "section_1": "Child/Dependent Credits", + "section_2": "Other Dependent Tax Credit", + "indexable": false, + "indexed": false, + "type": "bool", + "value": [ + { + "year": 2013, + "value": false + }, + { + "year": 2021, + "value": true + }, + { + "year": 2022, + "value": false + } + ], + "validators": { + "range": { + "min": false, + "max": true + } + }, + "compatible_data": { + "puf": true, + "cps": true + } + }, "CTC_ps": { "title": "Child tax credit phaseout MAGI start", "description": "Child tax credit begins to decrease when MAGI is above this level; read descriptions of the dependent credit amounts for how they phase out when MAGI is above this level.", diff --git a/taxcalc/reforms/ARPA.json b/taxcalc/reforms/ARPA.json index b61e52f80..055e94c54 100644 --- a/taxcalc/reforms/ARPA.json +++ b/taxcalc/reforms/ARPA.json @@ -29,6 +29,8 @@ "2021": [0, 0, 0, 0, 0]}, "CTC_refundable": {"2021": true, "2022": false}, + "ODC_refundable": {"2021": true, + "2022": false}, "CTC_include17": {"2021": true, "2022": false}, "CTC_new_c": {"2021": 1000, diff --git a/taxcalc/tests/cpscsv_agg_expect.csv b/taxcalc/tests/cpscsv_agg_expect.csv index e22b36d03..fd1e4e40d 100644 --- a/taxcalc/tests/cpscsv_agg_expect.csv +++ b/taxcalc/tests/cpscsv_agg_expect.csv @@ -12,13 +12,13 @@ AMT Income ($b),8319.8,10262.0,10680.4,11012.7,12497.3,13059.3,13639.6,14233.9,1 AMT Liability ($b),8.1,0.8,0.7,0.6,1.8,1.3,1.1,1.0,1.0,16.7 AMT Filers (#m),2.6,0.2,0.2,0.1,0.3,0.2,0.2,0.2,0.2,4.0 Tax before Credits ($b),1116.0,1380.6,1449.5,1505.8,1762.7,1866.0,1913.9,1986.7,2086.0,2309.0 -Refundable Credits ($b),70.8,102.4,102.7,654.9,824.0,98.2,107.9,111.9,112.7,97.9 -Nonrefundable Credits ($b),32.7,97.2,99.1,99.4,3.2,107.7,107.8,109.1,110.9,29.9 +Refundable Credits ($b),70.8,102.4,102.7,654.9,827.3,98.2,107.9,111.9,112.7,97.9 +Nonrefundable Credits ($b),32.7,97.2,99.1,99.4,0.0,107.7,107.8,109.1,110.9,29.9 Reform Surtaxes ($b),0.0,0.0,0.0,0.0,0.0,0.0,0.0,0.0,0.0,0.0 Other Taxes ($b),5.5,10.7,11.3,12.6,13.8,14.4,15.4,15.8,16.4,17.5 -Ind Income Tax ($b),1018.1,1191.6,1259.0,764.2,950.4,1674.6,1713.6,1781.5,1878.8,2198.7 +Ind Income Tax ($b),1018.1,1191.6,1259.0,764.2,949.3,1674.6,1713.6,1781.5,1878.8,2198.7 Payroll Taxes ($b),1040.8,1141.6,1194.9,1217.9,1318.7,1421.6,1499.5,1571.9,1648.9,1723.0 -Combined Liability ($b),2059.0,2333.2,2453.9,1982.1,2269.1,3096.2,3213.2,3353.3,3527.7,3921.7 +Combined Liability ($b),2059.0,2333.2,2453.9,1982.1,2268.0,3096.2,3213.2,3353.3,3527.7,3921.7 With Income Tax <= 0 (#m),88.1,96.2,97.0,135.2,127.7,96.0,98.3,99.5,100.1,98.0 With Combined Tax <= 0 (#m),62.8,65.4,66.4,98.2,97.7,67.7,69.5,70.7,71.6,71.0 UBI Benefits ($b),0.0,0.0,0.0,0.0,0.0,0.0,0.0,0.0,0.0,0.0 diff --git a/taxcalc/tests/pufcsv_agg_expect.csv b/taxcalc/tests/pufcsv_agg_expect.csv index 4690d2732..f62761190 100644 --- a/taxcalc/tests/pufcsv_agg_expect.csv +++ b/taxcalc/tests/pufcsv_agg_expect.csv @@ -12,13 +12,13 @@ AMT Income ($b),10512.6,11427.4,11835.3,12265.7,14381.5,14811.8,15123.1,15662.5, AMT Liability ($b),51.3,23.2,24.1,25.1,29.0,28.9,30.1,31.3,32.7,84.2 AMT Filers (#m),5.7,0.6,0.6,0.3,0.7,0.7,0.6,0.6,0.6,7.1 Tax before Credits ($b),1708.1,1735.5,1802.2,1887.2,2303.7,2387.2,2353.8,2412.0,2537.2,2784.3 -Refundable Credits ($b),102.9,117.4,118.5,641.8,800.0,119.1,129.3,134.2,136.3,122.4 -Nonrefundable Credits ($b),67.0,127.3,129.2,128.7,50.4,140.7,137.4,138.0,141.4,74.4 +Refundable Credits ($b),102.9,117.4,118.5,641.8,802.7,119.1,129.3,134.2,136.3,122.4 +Nonrefundable Credits ($b),67.0,127.3,129.2,128.7,47.6,140.7,137.4,138.0,141.4,74.4 Reform Surtaxes ($b),0.0,0.0,0.0,0.0,0.0,0.0,0.0,0.0,0.0,0.0 Other Taxes ($b),40.0,44.8,43.6,52.9,83.6,73.6,67.3,64.4,63.9,62.6 -Ind Income Tax ($b),1578.3,1535.5,1598.1,1169.6,1538.0,2200.9,2154.3,2204.2,2323.4,2650.0 +Ind Income Tax ($b),1578.3,1535.5,1598.1,1169.6,1536.9,2200.9,2154.3,2204.2,2323.4,2650.0 Payroll Taxes ($b),1083.8,1133.3,1185.4,1209.0,1306.0,1403.4,1482.1,1553.4,1629.6,1703.2 -Combined Liability ($b),2662.0,2668.8,2783.5,2378.5,2844.0,3604.3,3636.4,3757.6,3953.0,4353.2 +Combined Liability ($b),2662.0,2668.8,2783.5,2378.5,2842.9,3604.3,3636.4,3757.6,3953.0,4353.2 With Income Tax <= 0 (#m),92.8,98.6,99.7,131.4,125.0,100.2,102.5,103.9,104.9,101.7 With Combined Tax <= 0 (#m),63.4,65.6,66.8,102.0,94.5,68.8,70.6,71.9,73.0,72.8 UBI Benefits ($b),0.0,0.0,0.0,0.0,0.0,0.0,0.0,0.0,0.0,0.0